General Discussion Topics, page-134910

Movement at the station?
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Yes SYA gained 2 pips to finish at 4.2, volume was comparatively small, just over 89m shares traded.

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Yesterday US Markets were weak, but not very much. It still finished in red, but SP 500 just around 0.1% down, as well as closed towards the high of the day. So still holding the level and may be setting up a platform for another rise.
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US Li stocks, in general, had a good day. On the weekend in the Weekly Report I had written that ALB finishing on 118 was a good sign and keeps the hope alive for reversal - a drop towards 112/115 may have meant a much onerous task. I had also written that by Monday/Tuesday, lets hope ALB get to 120s - first step. It did that yesterday. Second step is to get over 128. Its close to 125 - within reach now, but needs a good green day. SQM too moving towards its first hurdle of 50, finishing close to 49. So a positive move yesterday and keeps the path open for a possible reversal.

ASX finished marginally in green. ASX Li stocks, mixed, but all the big stocks and leaders of the group were in green - not massive but decent - around 4 to 5%. So ASX Li embraced the path shown by US Li yesterday night. No big wins yet, but going in the right direction for a possible reversal.
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So something has changed. Last 2 days we have done less than 100m shares trading. This is after a very volatile , nearly 1 month, where for multiple days much over 200m shares. I had been writing previously, that if we were to rise, one of the key things we want is for volatility to go away and we should start doing 100m shares trading. So that is happening. I had wanted a volatile action to take us much higher before this calmness, but I still feel its positive. It looks to me as first signs of reversal where the big shorters are realising that it may not be easy to make much money by pushing below 4, so slowly getting less noisy. Haven't checked short position, but trading pattern is giving some signs. They allowed it to finish at 4.2 today, instead of 4.1. Why? Bad intention - borrow at 4.2 tomorrow, a higher level to short, or slowly losing the bite. I would like to think its the latter, but we are still near our bottom, playing in danger, so still useful to cautious and respect price action.
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Personally I had picked up some more Li stocks yesterday, including SYA at 4. Last Friday my average was 4.6, now its 4.5 - lets see if anything good comes out of it. Usually don't like averaging down, but after the big drop with PLL saga, I thought risk/reward many not be bad, still carries risk though.

So what may happen tomorrow? All depends on US Li tonight. A good move yesterday, but needs a follow through. Both ALB and SQM close to one of their key levels (the levels I follow, it may not be for many). If things don't go well, ALB staying in 120s may still be all right, SQM above 46. But if things go fine, a close above 128 for ALB and 50 for SQM would the first signal that another attempt is being made for a recovery of Li stocks. It will not be confirmation, but would keep the path open. ASX Li may like it tomorrow and some may try to get out of their near term resistances.. Will that happen? Lets hope so. All the best.